Apple is reportedly in talks to acquire the U.S. broadcast rights for Formula 1, potentially succeeding ESPN as the rights holder after the 2025 season. This move aligns with Apple's broader strategy to strengthen its position in live sports broadcasting and expand the sports offerings on Apple TV+.
Apple's Growing Interest in Sports Broadcasting
Apple has already made significant strides in the sports broadcasting arena. It currently holds rights to Major League Baseball (MLB) through "Friday Night Baseball" and has an exclusive global streaming agreement with Major League Soccer (MLS). Acquiring Formula 1 rights would further solidify Apple's presence in the live sports market and attract a larger audience to its streaming platform.
The Formula 1 Factor
Formula 1's popularity in the United States has been on the rise, fueled in part by Netflix's docuseries, "Formula 1: Drive to Survive". Liberty Media, the U.S.-based owner of Formula 1, is actively working to grow the sport's presence in America. Apple seems to be capitalizing on this momentum, as evidenced by the recent release of "F1: The Movie," an Apple Original Films project starring Brad Pitt. The film's success, grossing over $300 million worldwide, has further fueled rumors of Apple's interest in acquiring the broadcasting rights.
The Bidding Landscape
ESPN currently holds the exclusive U.S. broadcasting rights for Formula 1, with their contract expiring at the end of 2025. While ESPN has been a long-standing partner, holding the rights since 2018 and averaging 1.3 million viewers per race, they lost their exclusive renewal window earlier this year. This has opened the door for other potential bidders, including Apple and Netflix. Some reports suggest that Amazon and NBC Sports have also held negotiations with F1. Apple has reportedly offered between $150-200 million per year, potentially exceeding F1's asking price of $150-180 million. In comparison, ESPN's current deal is valued at approximately $85 million per year.
Challenges and Considerations
While Apple's deep pockets could easily meet the asking price, the company has been selective in acquiring sports rights, prioritizing global rights deals. The Formula 1 contract under consideration is solely for the United States. Another factor to consider is the existing F1 TV, Formula 1's own direct-to-consumer streaming service. In other markets, exclusive broadcast rights holders often restrict the availability of F1 TV. It is unclear how Apple would approach this situation if it secures the U.S. rights.
The Potential Impact
If Apple succeeds in acquiring the Formula 1 broadcasting rights, it could significantly impact the way Americans consume the sport. Apple's established streaming platform, Apple TV+, offers a user-friendly experience, as seen with its coverage of Major League Soccer games. Replicating this seamless experience with Formula 1 could attract even more viewers.
The move could also signal a shift in the sports broadcasting landscape, with tech companies like Apple and Netflix playing a more prominent role. As traditional media companies face increasing competition from streaming services, securing exclusive sports rights becomes crucial for attracting and retaining subscribers.
